Conversion to Physical

Tue, Jul 8, 2014 - 10:39am

Truth is not always seen when shown, and not always loved when seen.


Can the prophet ever be honored at home? Part of the challenge of converting friends & family to precious metal ownership is just that—it requires a conversion. But it is different than a conversion, lets say, from being a Catholic to being a Baptist, or from apostasy to any religion. Within the bounds of western societies, these are perfectly normal and expected conversions. A guy gets married and starts going to church with his more religious wife. A teenager finds Jesus and attends the youth group at the local church. Today, these are common and acceptable conversions and indeed my own parents breathed a sigh of relief when I started going to church instead of hanging out with my troublemaker friends.

No, converting to precious metals is more like converting from Islam to Christianity, or vice versa. It has to be complete and it could cost you much. Those who talk too much about their conversion to family & friends are often alienated. But, you are literally saving your soul from the hell of poverty and destitution…that is if you believe in societal collapse, or even economic impoverishment as a nation. With conversion to precious metals, you cross a line. You are putting your labor-wages into true money that will survive whatever hell may be approaching us.

Paper or physical?

You will love one and hate the other. Once you leave the paper system and start dabbling in physical, you either get sucked all the way in, with every extra labor-fiat unit going into physical and living for the future, or you can’t see the future you are avoiding and “sellout” going back into paper and living for the moment. Though I have advocated keeping a foot in both worlds earlier, I freely admit that I only keep enough paper to function normally in this paper society and as much as possible is stored in physical. I also define “physical” not as AU & AG only, but any physical commodity that will hold its value through economic turmoil. If you are buying land and raising goats, I tip my hat to you. You are actually a step ahead of me.

So we have a problem as those committed to physical wealth. We love people who are immersed in paper and do not realize their peril. One of our members put it succinctly:

“I've given up trying to awaken friends, neighbors and extended family. I've found it's a waste of time and it simply pisses me off that folks won't consider an opinion that is counter to their comfortable notion of how the world works. I'm reminded of the old saying: It's like teaching pigs to sing, it doesn't work and it only annoys the pigs.” -- GuerrillaCapitalist

Though I share the same frustrations and cannot disagree, I am not ready to give up on them yet! Love constrains me to keep trying. But how do you get past the barriers?

First, as a student of persuasion, I have chosen to Use what we call “invitational rhetoric” where the persuader presents a case, but does not compel a person to action. Once a person sees the truth, and understands why following the logical actions that truth would dictate is the wisest course of action, they must make that decision for themselves. If I use all my rhetorical tricks to goad them into action, I risk ruining a relationship and I risk that they will go back to paper after I go away. But one rhetorical strategy is often very successful and forces a person to come to terms with truth in their own mind—initiate cognitive dissonance: the excessive mental stress and discomfort experienced by an individual who … is confronted by new information that conflicts with existing beliefs, ideas, or values. Simply provide enough truth--truth that cannot be dismissed--and let the receiver argue it out in their own mind.

We have discussed this issue at length on this blog and the most productive method appears to come through simply giving the gift of metal while explaining the nature of fiat. I successfully converted my history colleague next door by letting him fondle an eagle I keep in my pocket. He already knew about fiat and reserve currencies and the history of monetary evolution. He bought five eagles within a couple of weeks and began making regular purchases, asking me where to buy. My kids decided to buy physical after seeing their dad buy and count it on the kitchen table. There is nothing like the heft of precious metals in one’s hand.

With Eagles in the low twenties, why not give a gift of an Eagle and a hand-written appeal encouraging your friend to take a small step in converting. Ironically, the argument that “Everyone is doing it.” may be the most logical and heaviest reason to buy gold. By over 4 to one, more world citizens see metals as money than see paper as money.

  • 2.75 Billion in the China, India, & Russia are buying silver & gold.
  • 0.65 Billion in the US and Eurozone are selling silver & gold.
  • Why the difference?
  • Is the American economy healthy?
  • Which side of the economic world do you want to invest in?

Paper or Physical?

About the Author


Jul 8, 2014 - 10:44am

Dr. J

Well said!

Jul 8, 2014 - 10:44am


someone has to do it


Oh Bollocks :-)

Jul 8, 2014 - 10:50am


And that may be enough!

Jul 8, 2014 - 10:55am


And gold and silver just shot up.


sierra skier
Jul 8, 2014 - 10:57am

My conversion to physical

My conversion to physical over the last 5 years has been to the tune of about 5% of my total assets. I would love to do more but my paper provides my long term income. If things get so bad my long term privately held paper becomes useless than paper income will be a thing of the past anyway.

I have tried speaking with friends and relatives but to little avail. I do give silver rounds to some in an effort to stimulate their thoughts and interest though. There is no point in alienating friends and family if they wish to remain susceptible to a collapse.

sierra skier
Jul 8, 2014 - 11:05am

Dr. J

I would hope that is enough and have a good feeling about the amount. If I had more disposable cash I would certainly increase my holdings but along with my other tangibles, tools and skills I believe my diversification is adequate.

Thanks for your post.

Jul 8, 2014 - 11:15am

I'd like to talk to you about gold

Well, we have been discussion global warming so I guess religion isn't out of line. Everyone has to be able to laugh at themselves now and then.

Jul 8, 2014 - 11:56am

And anyway, how can numbers in a computer bank account be money?

This is a useful start, I feel able to contribute too. I have found the easiest way to get most people to experience that initial doubt, or as we now call it, 'cognitive dissonance', is to ask them, 'How can numbers in your bank account or credit card account be money - if it's just a computer?' Well I remember getting my first paper money as a gift when seven years old, a single specimen of the much loved rusty-red 'ten bob note' of the pre-decimal UK money. I stood puzzled, knowing that the correct response was a simple, 'Thanks dad!', but my question, 'How can this be money?', won out. I think the response was a grumpy, "It's legal tender'. And I never did get a sensible answer, not surprisingly. So this is one of the situations where my 'attitudinal can-opener' question is inappropriate. But I think the puzzle stuck with me for decades, and finally I got there myself, when I read Thomas Sowell's 'Basic Economics', and later the gold and silver breakout occurred in 2011. But even for a basic awkward squad think-for-yourself type, it took me most of a lifetime - such are the forces against us.

Jul 8, 2014 - 12:01pm
Jul 8, 2014 - 12:16pm

Too true!

Well done Dr Jerome! Congratulations on your successes in opening eyes. As a matter of fact I picked out some Perth coins for my nieces birthday this week, you know, some cute ones with koalas and kookaburras on them and a Chinese panda too. I would not do this if they were wild, irresponsible types because there would be little point in gifting AG if it was swapped out for currency to pay bills, buy toys, or party with.

I have had some small success (mentioned in comments last week) in getting some young in laws interested and looking to swap some fiat into money. Extremely gratifying for me personally to have even just begun the process of leading them in this direction. I did this through gifting 10 oz silver bars to the young babies via their young parents, much as you described.

For me personally, and I will presume many others, the trick is to NOT overwhelm them with all of the incredible information I have found while poking down "the rabbit hole". There is little to be gained if I shake their foundations too much, too quickly, I am not willing to be marginalized for being their "conspiracy theorist uncle". This is something to be very mindful of in my opinion, and I hope I am able to successfully convert all of my clans family units into holding some phyz soon. I realize I won't be as successful as I would like to be. But I WILL make a difference, even if it just by sacrificing some of my stack as gifts to them with the explanation that it should be treated similar to a 401k, something to be added to but not withdrawn from.

Personally I hope every Turdite has/will give of their stack to their loved ones. You may just help shape another "prophet of real money" (too dramatic, I know) who will be able to convert others at some point. The more people in our families we can enlighten along these lines, the better off the whole clan is.

Thanks again Dr Jerome, you da man!

stack on

Jul 8, 2014 - 12:22pm


"it should be treated similar to a 401k, something to be added to but not withdrawn from."

Perfect phrase. Just the language most can understand.

Jul 8, 2014 - 12:26pm

Learning Early?

As I clicked the link for this article my two year old girl looked at the screen, saw the Turd rounds and exclaimed, "Look Daddy! Money!" Hopefully it will be recognized as money by the time shes old enough to understand it all.

TreeTop Dweller
Jul 8, 2014 - 12:45pm

Genuine vs Phony

A friend wanted me to buy his motorcycle, it was listed on Craiglist. Thinking I was still in possession of two 1 oz buffalos from 2006 (does not comprehend why I took them out on a lake) he offered to exchange the bike for the 2 coins. Based on the then price of Au it seemed like fair exchange (in his eyes).

I refused,"Why would you sell it to a stranger for something phony but asking me to pay in genuine?"

He asked for an explanation. "Go figure it out for yourself" was the best I could respond. "That is how I learned..."

Two years later he has learned for himself.

Sometimes the challenge and the mystery is best way to convert? This person would never have have listened to anything I could have said based on the merits of sound money.

Jul 8, 2014 - 1:35pm

Becoming enlightened about physical sound money gold & silver,

over the black magic illusionist paper currencies being printed to infinity is like having a 6th sense. You can see the walking financial dead but rarely do any, if ever, see you. It places one in an absolutely entire different dimension beyond the common senses of the masses.

Colonel Angus
Jul 8, 2014 - 1:48pm


I've found the easiest way to talk to people is just to let them know what you are doing. So many people think that I know something because of my education. So they ask what I'm invested in. I tell them, "Well, my family and myself." They don't want to invest in my young'uns, so I go further and tell them about the apple orchard, the cherry trees, the blueberries, the plums and peaches. I tell them about the garden, the chicken coop, the designs on having cows, pigs, goats. I remind them that we homeschool and spend many thousand per year on that, not to mention the foregoing of a salary for my wife. I let them know that we spend time with neighbors, and I've learned how to work on that old tractor that often has me cussing. And eventually I tell them I have almost zero fiat but instead have gold and silver, guns and ammo.

Since I deal with financial issues, they ask me why, and I show them my 100 trillion note from Zimbabwe and talk to them about all the issues happening in this country. I tell them that I wouldn't invest someone else's fiat in what we're doing, but I think people should at least think about it. And I tend to walk away from the subject with that.

I've been known to sell silver to friends in $5000 fiat increments. I find better deals because I know people, and I pass the deals on to friends. Not a single one has come back to yell at me because of a fiat price drop in silver. I've also facilitated deals between friends and trusted purveyors or gold or silver. It's my little part...

Jul 8, 2014 - 2:55pm

Spain Issues Retroactive 0.03% Tax on Bank Deposits

Saturday, July 05, 2014 12:16 PM

Spain Issues Retroactive 0.03% Tax on Bank Deposits to "Boost Economic Growth and Job Creation"

Via translation from Libre Mercado, Spain will retroactively tax bank deposits to January 1, 2014 stating the move will boost growth and job creation.

Guru Huky correctly labeled the tax for what it is "More than a tax, this looks like a mini seizure of deposits. Someone likely needs a few million and to balance the books."

The notion that a tax increase will boost the economy is of course absurd. But don't worry, it's only 0.03%, nudge nudge, wink wink ... for now.

Mike "Mish" Shedlock

4 oz
Jul 8, 2014 - 3:00pm

I Like Converting!

Did so again today.

Jul 8, 2014 - 3:03pm

Helping the ailing and artificially propped up US ECONomy

We are helping the ailing and artificially propped up US ECONomy with purchases of four Suniva 250 watt solar panels (US MADE!), six 12v deep cycle batteries, MorningStar charge controller and 2000w Xantrex pure sign wave inverter.

Get your panels now before Chinese solar demand and AG explosions put these panels out of the reach for the normal Joe 6pack...

Jul 8, 2014 - 3:15pm

Proper football, innit

The world cup semi-final starts in less than an hour. Could be an epic battle - Germany vs Brazil (or Brasil, as the brazilians call it, but they can't spell).

Both teams are attacking sides. The hosts Brazil will be absolutely desperate to win, and Germany have been playing superbly throughout most of the tournament.

Git yerself some proper football.

Ya hear y'all!

Colonel Angus AC_Doctor
Jul 8, 2014 - 3:17pm

Hey AC doctor...

...would you mind telling us the total bill on that? Websites seem to show it would take 20 years to repay the initial investment, and I hope that is pure BS. I want to get off the grid, but with five kids under age ten I have to do so in a fiscally prudent way.

BagOfGold AC_Doctor
Jul 8, 2014 - 3:26pm

Help the ailing & artificially propped up US "eCONomy"?...

Bettter yet!...Help yourself & at the same time...quit supporting the psycopaths...& make your own solar panels for next to nothing...& spend the money you saved...on food & PMs!!!...



Bag Of Gold

Jul 8, 2014 - 3:26pm
Jul 8, 2014 - 3:51pm

UP My Alley Article

Thank you Dr.J for a great article enjoyed it very much as I am a very strong Stacker in it for Survival. I was accused recently on SilverDoctors for being like this guy (Well Duck, SCROOGE!!) Lol

The only thing we have in common is the Kilt which I wear and maybe walking like a duck but I'm past F____ like one Lol also the 1/4 oz Gold Donald Duck coin which I just acquired has the gold requirement. Keep Stacking

P.S. The only time I see my Stack is when I add or remove from it.

Verus nemo
Jul 8, 2014 - 3:57pm

AC Doctor's solar components

I join the Colonel above in wondering about the cost, AC Doc. A very quick search online suggests that the components you listed could be obtained for less than $ that about right?

Jul 8, 2014 - 4:33pm

Solar components breakdown

Solar components breakdown:

Four Suniva 250 watt panels (modules) $1050.00 bought local no shipping $ 1050.00

6 Advanced Auto Parts 27M Marine deep cycle batteries (66.6 amp hours each)-used TRT41 $40 off coupon $ 480.00

Xantrex 2000 watt pure sign wave inverter-Amazon $ 380.00

Morningstar 45a MPPT controller $ 350.00

Misc battery cables, lugs and wire (i crimped myself with borrowed tool) expensive stuff if bought 1/0 wire $ 200.00

Misc. I still need? I did all labor $ 200.00?

Approx. $ 2660.00

Piece of mind to keep certain items working=PRICELESS!!!

I used 1/0 wiring between batteries and the short 2.5' run to the inverter per Xantrex specs.

Dagney Taggart
Jul 8, 2014 - 4:40pm

Wire Sizing

I mentioned this when Dr. J was talking about his solar system:

Size your wire to the maximum wattage you may want in the future, not the present system. The minimal extra cost and duplication of work later makes this practical to do up front.

These are the battaries we imported here and use in Nevada on our backup systems:

PS. And buy the best inverter you can afford. Then buy a backup if satisfied with it. You can always sell/trade it. We don't see solar panels or batteries being in short supply in the future. If anything, it would be the controllers and specific wire sizes with the direct-bury/UV-stable PE sleeve.

Mr. Fix
Jul 8, 2014 - 5:20pm

I think there is something to this:

Is The Fed Going To Attempt A Controlled Collapse?

Submitted by Tyler Durden on 07/08/2014 - 17:00

As most Fed watchers know, last week was interesting because Janet Yellen, speaking at IMF came out and said something quite surprising. In a nutshell,she said “It’s not the Fed’s job to pop bubbles”. While many market participants immediately took this to mean, “To the moon, Alice!” and started buying equities hand over fist, there’s another possible explanation for Mrs. Yellen’s proclamation of unwillingness: The Fed could be preparing to do exactly what it said it wouldn’t. Bringing forward the next leg of the cycle, may well be on the Fed’s agenda.

Jul 8, 2014 - 5:30pm

German Receipts Here

The Fed won't let Germany inspect its own gold
El Gordo
Jul 8, 2014 - 6:33pm

Family matters

Daughter goes to Pappy and says "Pappy, I'm going to marry Joe Bob across the ridge." Pappy tells Daughter, you can't marry Joe Bob because he is your half-brother, but don't tell Mama. Later, Daughter tells Pappy that she is going to marry Bruce who lives down the draw a ways. Pappy tells Daughter, you can't marry Bruce because he is also your half-brother, but don't tell Mama. Daughter, having had enough, goes to Mama to spill the beans on Pappy. Mama tells Daughter, "you just go ahead and marry which ever one of them you want, 'cause you ain't related to Pappy in no way. Some families are complex.

treefrog El Gordo
Jul 8, 2014 - 6:43pm

el gordo,

there's an old appalachian song like that. buffy st. marie did a version. i don't remember the title.

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